Mumbai: Studds Accessories Ltd, India’s largest maker of helmets and different -wheeler add-ons, has initiated talks with personal equity investors to elevate as a great deal as ₹ 100 crore beforehand of a deliberate preliminary public providing (IPO), stated two humans aware of the organisation’s plans. Established in 1975, Studds is presently the biggest-promoting helmet logo in India. In 2016, the employer launched a premium helmet brand SMK.
“The business enterprise has been engaged in talks with a few personal fairness funds and specialist pre-IPO investors to raise up to ₹ one hundred crore in advance of its proposed public providing,” said the first character, asking for anonymity as the talks are non-public. “The markets have been unstable and as a consequence pricing of issues have been a mission for issuers. By elevating a pre-IPO investment, it’ll assist the employer establish a benchmark valuation for the initial public presenting .”
Studds is aiming to list in February, the character stated. “It is a main consumer brand and accordingly there is good sufficient call for for their supplying.
If the markets are supportive, then they would really like to go ahead and launch their IPO in February,” he introduced.
“Studds Accessories Ltd (the Company) had filed a draft red herring prospectus dated August 24, 2018 (DRHP) with the Securities and Exchange Board of India (SEBI) for its IPO. The enterprise obtained very last observations from SEBI in December 2018. The timing of opening of the initial public presenting could be determined by means of the enterprise and the promoter selling shareholders in consultation with Book Running Lead Managers (BRLMs), as disclosed within the DRHP,” the company said in reaction to queries. Studds however declined to comment on the pre-IPO funding.
Research and consulting company Frost & Sullivan stated in its August 2018 report titled 2 Wheeler Helmet and Select Accessories Market in India that Studds is the most important maker of two-wheeler helmets inside the global by using income quantity in monetary 2018.
The flagship Studds emblem is advertised and bought in 21 international locations, while the premium emblem SMK is sold in 23 countries across Europe, Asia and Latin America, according to the organization’s draft prospectus.
Studds plans to raise ₹ 98 crore in fresh capital via its proposed IPO, consistent with its draft prospectus. The IPO additionally consists of a suggestion for sale of 3.Ninety four million shares via promoters Madhu Bhushan Khurana and Sidhartha Bhushan Khurana, and other current shareholders.
Studds plans to use the proceeds of the IPO to partially finance its -wheeler helmet and add-ons production facility and a bicycle helmet manufacturing unit, each in Faridabad. In 2017-18, Studds mentioned a sales of ₹ 341.7 crore, up from ₹ 311.1 crore in the preceding year. Profit increased to ₹ 32.Eight crore, from ₹ 23.6 crore within the preceding yr. Investment banks Edelweiss Financial Services and IIFL Holdings are advising the employer on the share sale.
Several businesses have tapped pre-IPO financing alternative in the recent instances.
On 20 December, Mint said that Sapphire Foods, the biggest franchisee of Yum! Brands Inc. Within the Indian subcontinent, has raised ₹ 225 crore in a fresh round of investment led by means of Edelweiss Private Equity’s specialist pre-IPO fund.
Earlier in July, informal dining eating place chain Barbeque Nation Hospitality Ltd raised ₹ eighty-90 crore in a pre-IPO placement from Alchemy Capital Management, an funding firm co-founded via ace inventory market investor Rakesh Jhunjhunwala.